A bettor on a cryptocurrency-based prediction market, Polymarket, went underwater after gambling in favor of a Donald Trump victory in the upcoming presidential elections.
What Happened: As revealed by the platform’s official X handle, a trader, going by the pseudonym truppppp, is down more than 12% on their positions, amounting to $72,000.
The significant blow to their trade comes as the odds of a Trump presidency slid sharply on the so-called decentralized prediction market.
According to fresh data, bets in favor of Trump dropped from 71% to 58% over the last two weeks. On the other hand, wagers backing the new Democratic presidential nominee, Kamala Harris, soared to 38% after she replaced incumbent president Joe Biden for the race.
Why It Matters: Polymarket, which is built atop Ethereum (CRYPTO: ETH) Layer-2 chain Polygon (CRYPTO: MATIC), has emerged as one of the world’s top prediction markets for U.S. elections over the last few months.
Users can buy or sell outcome shares, which can be redeemed for $1 if the outcome is correct, and become worthless if it’s incorrect. However, it currently does not allow U.S. users to place trades based on its predictions.
Cryptocurrency has emerged as one of the hottest topics in this year’s elections, with the Republican party led by Trump openly endorsing it, while expectations of a “crypto reset” are high from Harris.
Price Action: At the time of writing, Trump-inspired Maga Coin (CRYPTO: TRUMP) is exchanging hands at $5.28, up 0.18% in the last 24 hours. Coin themed on Harris, Kamala Horris (CRYPTO: KAMA) is down 15% in the 24-hour period.
Image via Shutterstock
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